Groove Book Owners receive Two COMPLETELY Different Offers | Shark Tank US

next into the tank is a couple with an affordable solution for all those digital photos stacking up on our smartphones [Music] hi sharks my name is brian whiteman and this is my baby mama julie we're from chatsworth california and today we are seeking 150 000 for 20 of our company groove book billions of photos are taken every day from smartphones who doesn't have a phone with hundreds if not thousands of photos what do people do with all the photos they've taken absolutely nothing for just 299 a month including shipping and handling the group book app allows you to choose up to 100 photos every month from your smartphone and create a beautiful bound photo book in just minutes each month your groov book gets delivered to you with an exciting new cover your photos are automatically stamped with the date and location so you will never forget they're perforated for easy removal and 4x6 which is the perfect size for framing and sharing who is that is that you it's a little worse why it is oh you had hair i have never seen you with hair groove book will save you time and money from printing out your photos at the store and on ink cartridges at home forget those expensive photo books they'll take you hours online and then charge you an arm and a leg for printing and shipping groove book is the answer so which one of you sharks is ready to get your groove on with groove book now my beautiful wife of 15 years is going to give each one of you your own custom groove book oh wow thank you thank you very much thank you face julie okay so brian yes what do you charge me for the book you get that entire book for 2.99 a month including shipping and handling wow that's a really great price how are you doing it for that low over pricing what does it cost you to make the book it cost me two dollars and 30 cents to make the book so you have a very small we have a 70 cents profit margin per book wow do you have any sales yes we do okay we have 18 000 paid subscribers in the last eight months good for you 18 18 000 paid so what are you making per month do the math for me well right now we're not making any money we need to get to 30 000 customers to break even after we get to 30 000 customers we make 70 cents every book why aren't you making money now because our overhead's 21 000 a month who's making these though we manufacture the books internally ourselves in our print shop now why haven't you or have you tried another price because we want everybody in america to be able to afford this book and we didn't want to have any excuse come on guys i mean look nobody in america can get it if you close the business right yeah yeah everybody in america i mean when i hear that it's just like be real how much have you guys invested in this company i've invested 400 thousand dollars oh wow yeah wow if you didn't own a printing business if i took this book and took it to another commercial printer would my cost be what you're charging today because i've developed would it be higher it would be higher so but do you understand the problem yeah i need your other business to stay in business with this business you know i don't think you ever explained why we have the groove in the side of the book one night in brian's frustration he was working on this for months um trying to figure out how to get this book flexible so that we can mail it bulk through the u.s postal service he was beating with a pen at the spine of the book he was so mad and frustrated that he came to me up he's like julie julie wake up and he showed me the photo book and it was all damaged and said to him what are you showing me and he said look it's flexing it's flexing i have the answer we will now be able to ship the book at about 80 cents a piece so because this book is flexible and this is we have a patent pending on the groove inside the book because it's flexible i'm able i'm able to mail it for 82 so that is the value proposition in your business so if you change the postage because the new binding what does it cost it'll go up it'll go up three to four dollars so anyone that tries to compete with us is going to have four dollars just in posting and you're saying you can protect this groove in it because yeah the new groove yes that's what i'm saying that's the most valuable asset that you have ryan can i can i ask you a question as a potential investor would you consider raising your price by a dollar yes we'd be open to that see i think that's wrong business altogether i see groov book as a service okay that starts to get interesting so i can go to shutterfly and say shutterfly you can't offer something like this you have high shipping right their average book is thirty dollars a book ours is 2.99 forget the pricing i want to make it a service so that if it's anything you don't want that customer what's that you don't own that car no no but mark is that on mark is what you have here anymore this is the unique accident the groove and the ability to ship and to create these pictures so inexpensively through you entrepreneurs lie to themselves all the time the visions are grandeur and here you are giving us those visions of grandeur by saying you want this for every home in america right get over that wouldn't you rather be able to say to all those all those applications that you're competing with right now now i've got a groove and i can ship this for 82 cents and you can't but if you want to offer this to all your customers i'm going to give you an interface and i'm going to charge you seven cents a picture you become a commercial printer and here i don't know better yet all you do is you become a money collector i i think mark's dead on there are so many applications as more photo sites come up and people upload to them you've done something none of them can do at that price point yes okay guys i'm gonna make you an offer i'll give you a hundred fifty thousand dollars for a hundred percent of the rights to sell groove book as a service through your commercial printer to everybody else you keep a hundred percent of the group book subscription service i want to license this as a service and then i can go to everybody and say look 82 cents to ship this 2.30 to print it i'm going to mark it up by three bucks if shutterfly flickr whoever it is picasa this way you can offer it to all your customers brian i think it's a phenomenal idea thank you but this business does not exist without your commercial printing business your costs are artificially low because of your other business i have a problem with that if i get into business with group book and the commercial printing business goes away what do i do like i i it's so symbiotic they're so related one doesn't exist without the other that's why your price point is so low because you're able to do that i'm out thank you robert made a point i'm a partner in group book you go out of business or you decide to raise the prices or anything else happens with your commercial printer i have a problem i'm out would you consider selling me the whole thing at the right price well you put a value on it of 750 000 right correct would you consider selling the whole thing and by the way brian that's what you walked in you're asking for i gave you what you want yes but we want we'd like to have some upside on that also so mark i'd like to just clarify a little bit more one more time please so in essence i'm paying you 150k to be the right to be hopefully your commercial printing company's largest groove book supplier so brian julie you've got 150 000 for a pure licensing deal you keep a hundred percent of your business okay the other offer from kevin is the full value of what you put on your company 750 000 for 100 of the business two completely different avenues totally different so i think we'd like to counter kevin's offer yeah we like to counter kevin's offer and we think that the company at this stage of the game is worth six million dollars oh wow [Music] two sharks are out brian and julie have two offers on the table one from mark for 150 000 for the licensing rights to groov book and one from kevin who has offered 750 000 to buy 100 of the company two completely different ads totally different so so i think we'd like to counter kevin's offer yeah we like to counter kevin's offer and we think that the company at this stage of the game is worth 6 million but you valued it at 750. because we want we want to be a part of the upside if you don't want to sell 100 of it i understand but you can't take the price and multiply it by six to sell control nobody would do that deal sure they can they can do whatever they want no but it won't happen the transaction won't occur are you saying yes or no to their 6 million no i won't pay 6 million for it and you knew i wouldn't is there some middle ground and you don't want us to have any skin in the game wait i do but i just i asked you simply to understand you as an entrepreneur where your head's at do you want to sell out is there a price that makes sense the answer is no i get it we want to have more skin in the game how much of the game do you want my friend i'd like to have at least 50 percent you want me to grow the business that's why my deal was perfect for you right right your deal is is it makes a lot of sense but with yours i'd like to have a little bit of skin in the game rather than 100 royalty okay so i'm manufacturing what do you think 50 of groove book is worth of today it's worth 375 000 yeah and it's a no-brainer all we want to do is we want to make sure you sell situations you'd sell fifty percent of group book for 375 000. listen we're gonna mark and i'm just gonna step aside for one second okay yes what are you yeah you'll do your numbers you don't want to do at 375 for 50 percent 50 percent but i don't want to be competing with mark yeah i'll jump in with mark because i don't want there to be all these other people out there using the same technology if the if you get the patent i would be willing to give you the 375 000 and if robert wants to go in on it happy to go on great at 50 25 25 but the whole business no licensing to somebody else you got to control the whole thing not doing what mark is saying so probably please do it right you said you'd sell 50 for 375 000 will you do the deal hell no are you kidding these are smarter than that guys no no no hang on hang on i like to i'd like to hear i like to hear it i like to hear their offer okay let me say what we decide 150 000 for a license to the name and the software and the ability to offer it as a service 80 for kevin and i 20 for you so you sharing the upside what we're gonna be is the one-off guys so when someone says i have 375 pictures on my camera i don't want a subscription i want a place where i can go and buy it you'll be the owner of group book and the group book subscription service will be groov book for all one-off applications or purchases okay he's giving an alternative to all your customers that you're trying to build a business to they don't have to be subscribers he's building a competitive one-up business it's kind of like the movie there will be blood you know the guy had the oil and you know he he didn't want to give up the oil to daniel day-lewis to do this so daniel de louis bought the house next to him he dug underneath and he sucked his oil well dry exactly you realize i'm a subscriber i'm about to sign up for group book i look on flickr and i say oh i don't need to subscribe i can do it one time so now you have two sharks kevin and mark who want to give you 150 000 for 80 of the non-subscription business and then you have another offer with two sharks who want to give you 375 000 for 50 of your business they help grow everything with you what are you going to do well i think we've done an excellent job growing it ourselves to 18 000 subscribers in a short period of time i think the better deal would be to go with mark and mr wonderful because 100 of growing it ourselves plus an additional 20 of revenue that you guys will work at i think is a win-win situation and i'm all about making win-win studios [Music] thank you thank you very much you

Channel: Shark Tank Global

Views: 2,125,970

Keywords: Shark Tank, Shark Tank US, Shark Tank Australia, Kevin O’Leary, Barbara Corcoran, Daymond John, Robert Herjavec, Mark Cuban, Lori Greiner, Dragons’ Den, Money Tigers, Entrepreneurship, investment, reality tv, groove book, kevin oleary, groovebook shark tank

Id: wO8LZ1bONh4

Length: 13min 24sec (804 seconds)

Published: Fri Mar 25 2022